Lecture 10 Outline - III. R OLE OF I DEAS IN DETERMINING M...

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Economics 134 Professor Christina Romer Spring 2012 Professor David Romer LECTURE 10 THE CONDUCT OF POSTWAR MONETARY POLICY FEBRUARY 16, 2012 I. O VERVIEW A. Where we have been B. Where we are headed II. D ESCRIBING P OLICY C HOICES WITH A M ONETARY P OLICY R ULE A. Overview B. Taylor’s specification of a monetary policy rule C. Monetary policy rules in a variety of regimes D. Parameter estimates 1. Taylor’s preferred coefficients 2. Importance of real rates rising in response to inflation E. Parameter estimates from different sample periods F. Deducing policy mistakes using deviations from a Taylor Rule
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Unformatted text preview: III. R OLE OF I DEAS IN DETERMINING M ONETARY P OLICY A CTIONS AND O UTCOMES A. Overview B. Early Martin Era Key idea: Intuitive natural rate hypothesis C. Late Martin and Early Burns Key idea: Exploitable inflation-output tradeoff Key idea: Unrealistically low estimate of the natural rate D. Middle Burns and Miller Key idea: Slack doesnt matter E. Late Burns, Volcker, and Greenspan Key ideas: Slack matters and the natural rate is fairly high G. Bernanke and the current FOMC Key idea: Loss of credibility could be harmful...
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This note was uploaded on 02/28/2012 for the course ECON 134 taught by Professor Davidromer during the Spring '12 term at University of California, Berkeley.

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